Illicit Gains Tax Research

In our country, whether collecting tax on the illegal income or not has been a controversial issue in the long time. The theory field has discussed it since over ten years ago. In the recent years, some cities , such as Guangzhou, Nanjing, and Shenyan , collect tax from prostitutes , which arouses people's extensive attention from all circles. Although the issue of whether illegal income is taxable or not was discussed fiercely, the theory field still has not reached a common recognition and which is not affirmed by the government. In January, 2006, the Treasury and the National Bureau of Tax Revenue delivered the Notification about Enhancing Administration to Collecting Management Taxation on such Agencies as Education, Laboring. The notification results in a huge discussion and worries from the public. A lot of people worried that collecting taxation on extra charges in schools which will cause it to become a legal base for schools' abnormal charges. Meanwhile, it will cause the schools' extra charges in various names become the legal ones. Once more, the issue of whether illegal income is taxable or not becomes the focus in the whole society.In fact, for some developed countries , such as America, Japan and Jermany , collecting tax on illegal income was turned into part of legal system early, illegal income should take the same tax paying as legal income. In China, some scholars still hold the traditional theories, illegal income should not be collected tax. But actually, in the taxation collection practice in our country, there exist the phenomena of collecting tax on illegal income, more or less. While it does not stand firmly and leads to a huge controversy for lacking of legal base .The practice is challenging the theory now. The research on the issue of whether illegal income is taxable or not will not only benefit the perfection of the fundamental theories in the tax law, can also be used to guide practice in taxation collection and solve the practice's deviation from the theories. Therefore, the research on this has tremendous meaning in legislation and practice.Apart from the preface and the conclusion, the whole article can be divided into four parts. Part 1: The feasibility about collecting tax on illegal income and relevant definitions . Since it is necessary to discuss the feasibility of collecting tax on illegal income, we should first define the definitions about income after tax paying and illegal income and make sure of the relationship between them. With the great amount of examining and analyzing, the author holds that under the current established tax law system, legitimacy is not the indispensable feature of income after tax paying, income after tax paying does not exclude illegal income from the base sense of itself.Part 2: The analyzing about the value of legislim to the tax collection on illegalincome. In this part the article deeply analyzes the basic theories; it also expatiates the principle of collecting tax by measuring the tax paying ability and the tax paying ability of illegal income, so come to the conclusion that illegal income has the same tax paying ability as legal income. Meanwhile, it is also an embodiment of the principle of tax fairness and justice. On the other hand, through the comment on the unique value and function of tax law, it solves the problem whether tax collecting on illegal income is against the current moral sense in our country.Part 3: The analyzing about taxability on illegal income from facts. The analysis is coming from two aspects. on the other hand, it provides many cases and experience which exist in the practice of tax collection as to perfect the current tax law system.Part 4: The problems in tax collection on illegal income and propositions for its system construction in tax law. The author contemplates the ways on how to construct a set of systems in the tax law which are easily handled. In other words, using indirect ways to seek the common recognition and affirmation in the short run, by which we can accumulate certain practical experience; in the long run we need specific law system to regulate this problem, and pioneer a special way fit for the current situation in China which is a system output about collecting tax on illegal income.his article has mainly utilized the standard analysis as well as the real diagnosis analysis research technique, Place of the innovation lies in operates from a strategically advantageous position, The system the tax law theory in quantity can specifically the assessment principle and illegal obtained tax revenue burden ability unifies closely in together, This article proves the educational world to propose conforms to the tax revenue fair principle viewpoint to the illegal obtained assessment, and provides the solid theory to support for illegal obtained tax research, and unifies our country national condition in the foundation which the legal principle theory of law question cleared off radically to make some ponders and exploration to the arrangement of the illegal obtained assessment system.